Does Homeowners Insurance Cover Theft Outside the Home?
Protect your belongings. Understand if your homeowners insurance covers theft outside your home, what's covered, and how to file a claim.
Homeowners insurance provides financial protection for your dwelling and personal belongings against various risks. Many wonder if this coverage extends to personal property stolen outside the home. Understanding your policy’s scope, especially for incidents away from your residence, offers peace of mind.
Understanding Off-Premises Personal Property Coverage
Homeowners insurance policies include personal property coverage. This part of your policy protects belongings from damage or theft, both within your home and elsewhere.
This coverage generally extends worldwide, protecting your items even when traveling. However, a specific sub-limit usually applies for off-premises losses, commonly 10% of your total personal property coverage. For instance, if you have $100,000 in personal property coverage, the off-premises limit might be $10,000. This caps reimbursement for items stolen outside your home.
Common Limitations and Exclusions
While homeowners insurance often covers off-premises theft, limitations and exclusions apply. High-value items like jewelry, furs, firearms, silverware, and collectibles often have special internal limits. For example, a policy might limit jewelry theft coverage to $1,500 or $2,500, regardless of actual worth. To protect these, add a scheduled personal property endorsement, also known as a personal article floater, to your policy. This allows you to insure specific items for their appraised value.
Property covered by other insurance policies is usually excluded from homeowners coverage. Your vehicle is covered by auto insurance, but personal property stolen from within your car is generally covered by your homeowners policy. Business property, including inventory or equipment for a home-based business, has limited or no coverage under a standard homeowners policy. Business items typically require separate business insurance.
Your policy’s deductible still applies to off-premises theft claims. You will pay this initial amount out of pocket before insurance coverage begins. Some policies may also have clauses regarding property left in unattended vehicles or where reasonable precautions were not taken.
What to Do After an Off-Premises Theft
If you experience an off-premises theft, taking specific actions can streamline the claims process. Report the theft to law enforcement where the incident occurred. Obtaining a police report and case number is crucial, as insurers almost always require this documentation.
After contacting the police, thoroughly document the loss. Gather detailed information about stolen items, including descriptions, serial numbers, purchase dates, and original receipts if available. Photographs can also be valuable evidence. Maintaining a home inventory can significantly aid this process by providing a record of your possessions.
Promptly contact your insurance provider to notify them of the theft. Be prepared to provide your policy number, police report details, and documentation of stolen items. Your insurer will guide you through the claims process, typically involving a claims adjuster to assess the loss.
For reimbursement, policies generally offer either Actual Cash Value (ACV) or Replacement Cost Value (RCV). ACV coverage pays the depreciated value of the stolen item. RCV coverage pays the cost to replace the stolen item with a new one at current market prices, without deducting for depreciation. RCV policies generally have higher premiums but offer a larger payout.